Post-Market News for December 10th 2012. Stocks in focus include, Google Inc (NASDAQ:GOOG), Citigroup Inc. (NYSE:C), Amgen, Inc. (NASDAQ:AMGN), Nexen Inc. (TSE:NXY) (NYSE:NXY), and Hewlett-Packard Company (NYSE:HPQ).
Post Market Update
Market Levels
• US: Dow: 13169.90 (0.11%), S&P 500: 1418.55 (0.03%), NASDAQ: 2986.96 (0.30%)
• Europe: CAC: 3612.10 (0.18%), DAX: 7530.92 (0.17%), FTSE: 5921.63 (0.12%)
• Asia-Pacific: Australia: 4557.90 (0.13%), China: 2083.77 (1.05%), Hong Kong: 22276.72 (0.38%), India: 5908.90 (0.03%), Japan: 9533.75 (0.07%).
• Metals: Gold: 1714.40 (0.52%), Silver: 33.38 (0.74%), Copper: 3.71 (1.17%)
• Energy: Crude Oil: 85.56 (-0.43%), Natural Gas: 3.85 (-0.77%)
• Commodities: Corn: 7.30 (-0.98%), Soya Bean: 14.74 (0.17%), Wheat: 8.48 (-1.42%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2944 (-0.15%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6075 (-0.23%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 82.3750 (-0.15%)
• 10 year US Treasury: 1.616% (-0.005)
Market and Economy News Update
U.S. markets end modestly higher: The Dow Jones Industrial Average (INDEXDJX:.DJI) and the S&P 500 (INDEXSP:.INX) closed largely unchanged, while the NASDAQComposite (INDEXNASDAQ:.IXIC) finished slightly higher, as investors preferred to stay out amid the continued uncertainty surrounding the ongoing “fiscal cliff” negotiations. The Dow Jones Industrial Average (INDEXDJX:.DJI) gained 14.75 points, or 0.11 percent, to end at 13,169.88 and the S&P 500 (INDEXSP:.INX) eked out a gain of 0.48 points, or 0.03 percent, to finish at 1,418.55, while the NASDAQComposite (INDEXNASDAQ:.IXIC) rose 8.92 points, or 0.30 percent, to close at 2,986.96. No major economic reports were released today.
Oil prices decline: Oil prices lost ground for the fifth straight session on Monday as concerns over the euro-zone outweighed economic data from China. Crude oil for January delivery dropped 0.4 percent, to settle at $85.56 a barrel on the New York Mercantile Exchange. Brent oil for January settlement added 0.4 percent to $107.47 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
Google Inc (NASDAQ:GOOG)
Google Inc (NASDAQ:GOOG) said some of its Gmail users across North America and Europe experienced a disruption earlier today, and that the issue has been resolved. The Google Apps Dashboard showed the “service disruption” affected the company’s Gmail and Drive services. Google Inc (NASDAQ:GOOG) did not specify how many users were affected. Gmail is one of Google Inc (NASDAQ:GOOG)’s most popular products with over 425 million active users worldwide. Google Inc (NASDAQ:GOOG) shares were up a fraction at $685.42. More details can be found here.
Hewlett-Packard Company (NYSE:HPQ)
Hewlett-Packard Company (NYSE:HPQ) gained 2.6 percent on strong volumes amid market speculation that billionaire investor Carl Icahn was building a position in the struggling technology giant. The speculation follows Hewlett-Packard Company (NYSE:HPQ)’s decline in share price last month after the company disclosed a $9 billion asset-impairment charge related to its acquisition of Autonomy Corp. Hewlett-Packard Company (NYSE:HPQ) is down 44 percent year to date and its market cap has plunged to $27.9 billion. Hewlett-Packard Company (NYSE:HPQ) refused to comment on the rumors, MarketWatch reported. Click here for more information.
Texas Instruments Incorporated (NASDAQ:TXN)
Chipmaker Texas Instruments Incorporated (NASDAQ:TXN) narrowed its fourth quarter sales and earnings outlook due to charges related to the restructuring of its wireless business. Texas Instruments Incorporated (NASDAQ:TXN) said it now expects a profit of 5 cents a share to 9 cents a share, on revenue of between $2.89 billion to $3.01 billion. The company had earlier forecast earnings of 23 to 31 cents, on revenue of $2.83 billion to $3.07 billion. Shares of Texas Instruments Incorporated (NASDAQ:TXN) were up 1.6 percent in after-hours trading.
Citigroup Inc. (NYSE:C)
Citigroup Inc. (NYSE:C) increased the size of its debt buyback offer, and said it will now purchase up to $1.2 billion of the notes. Citigroup Inc. (NYSE:C) had earlier said it would buy $910 million of the notes. Citigroup Inc. (NYSE:C) has decreased its outstanding long-term debt by about $13.9 billion for the year to date, excluding the offers. Citigroup Inc. (NYSE:C) had last week announced it will cut 11,000 jobs, which should help save about $900 million next year. Citigroup Inc. (NYSE:C) shares were down 1.2 percent at $37.19.
Amgen, Inc. (NASDAQ:AMGN)
Amgen, Inc. (NASDAQ:AMGN) today agreed to buy Iceland-based human genetics research and analytics company deCODE Genetics for $415 million in cash. deCODE, founded in 1996, has identified genetic risk factors that may be linked to a disease or disorders, such as cancers or heart disease. Amgen, Inc. (NASDAQ:AMGN) Chief Executive Robert Bradway said deCODE enhances the biopharmaceutical giant’s drive to develop better targeted drugs. The transaction is expected to be completed before the end of the year. Amgen, Inc. (NASDAQ:AMGN) is the world’s largest biotechnology company, and reported net income of $3.7 billion last year on sales of $15.6 billion.
Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) has secured approval from the U.S. Food and Drug Administration for its prostate cancer pill Zytiga to be used at an earlier stage of the disease. The regulator said Zytiga can now be prescribed before chemotherapy in men with late-stage prostate cancer, based on study results that showed it can extend life by up to five months. Michael Meyers, Johnson & Johnson (NYSE:JNJ)’s development team leader for Zytiga, said the approval may expand use by as much as fourfold. Johnson & Johnson (NYSE:JNJ) rose 0.2 percent to $70.60.
Nexen Inc. (TSE:NXY) (NYSE:NXY)
Nexen Inc. (TSE:NXY) (NYSE:NXY) jumped on Monday after the Canadian government approved a proposal from China’s state-owned CNOOC Limited (HKG:0883) (NYSE:CEO) to buy Nexen Inc. (TSE:NXY) (NYSE:NXY) for $15.1 billion. The board of Calgary, Alberta-based Nexen Inc. (TSE:NXY) (NYSE:NXY) had approved the takeover in July, but Canadian Prime Minister Stephen Harper took his time to review the deal amid growing concerns that the country’s vast energy resources could eventually end up in the hands of companies run by other nations. Nexen Inc. (TSE:NXY) (NYSE:NXY) primarily operates in western Canada, the Gulf of Mexico and the North Sea, and produced 213,000 barrels of oil a day on an average in the second quarter. More information here.
Dover Corporation (NYSE:DOV)
Diversified manufacturer Dover Corporation (NYSE:DOV) cut its outlook for the current year, but provided revenue guidance for 2013 that was above analyst expectations. Dover Corporation (NYSE:DOV) now expects full-year 2012 earnings of between $4.36 to $4.46 per share, down from an earlier estimate of $4.55 to $4.65 per share. However, Dover Corporation (NYSE:DOV) projected total revenue growth of 7 percent to 9 percent for the news year, with organic revenue growth of 3 percent to 5 percent and acquisition growth of 4 percent. Analysts most recently predicted a 5 percent revenue growth. Dover Corporation (NYSE:DOV) had lowered its outlook for 2012 in October citing near-term revenue challenges in the handset and electronics markets and the uncertainty surrounding the global economic environment.
John Wiley & Sons Inc (NYSE:JW.A) (NYSE:JW.B)
John Wiley & Sons Inc (NYSE:JW.A) (NYSE:JW.B) said fiscal second-quarter earnings fell 15 percent to $43.1 million, or 71 cents a share, from $50.8 million, or 83 cents a share, in the year ago-period. Excluding one-time items, John Wiley & Sons Inc (NYSE:JW.A) (NYSE:JW.B) earned 77 cents a share. Revenue dropped 3.4 percent to $431.8 million amid tight library budgets and difficult market conditions for higher education textbooks. Analysts were expecting John Wiley & Sons Inc (NYSE:JW.A) (NYSE:JW.B) to earn 82 cents a share on revenue of $447 million. John Wiley & Sons Inc (NYSE:JW.A) (NYSE:JW.B) lowered its view for the year and now expects a low single-digit revenue growth on a currency neutral basis.
Celldex Therapeutics, Inc. (NASDAQ:CLDX)
Celldex Therapeutics, Inc. (NASDAQ:CLDX) soared to a 52-week high after the company reported positive clinical trial results over the weekend for an experimental treatment for advanced breast cancer. Celldex Therapeutics, Inc. (NASDAQ:CLDX) said patients who were treated with CDX-011 had higher response rates and appeared to live longer. CDX-011 is an antibody-drug conjugate and is designed to attach itself to the protein GPNMB that promotes the migration, invasion and metastasis of breast cancer. Following the result, analysts said Celldex Therapeutics, Inc. (NASDAQ:CLDX) should receive approval for the drug sooner than expected. Oppenheimer & Co. maintained it’s “outperform” rating on Celldex Therapeutics, Inc. (NASDAQ:CLDX) stock and upped its target price to $10 from $8.
